Ethereum News Today: Fed's QT End and FUSAKA Upgrade Could Fuel Ethereum's Next Move

Ethereum (ETH) has retested a critical support level around $2,850, sparking renewed optimism among traders as the asset navigates a pivotal period ahead of the FUSAKA network upgrade scheduled for December 3. The price surge to $2,922 on November 24, a 5% gain, signals a potential reversal following a week of volatility, with analysts noting that the $2,850 level has historically acted as a key psychological barrier. This support has been reinforced by declining Ethereum supply on centralized exchanges, a trend often associated with bullish market cycles according to data.

Institutional demand is also playing a critical role in Ethereum's near-term trajectory. Spot Ethereum ETF inflows have turned positive, accumulating $230.9 million over three consecutive days, while large institutions now hold over 43% of circulating ETH, according to CoinGlass. This shift reflects growing confidence in Ethereum's fundamentals, particularly as the Federal Reserve's end of quantitative tightening (QT) on December 1 is expected to inject liquidity into risk assets according to analysis. Polymarket traders have priced in an 85% probability of a 25-basis-point rate cut in December, further bolstering market sentiment.

The FUSAKA upgrade, Ethereum's most significant technical development since The Merge, introduces PeerDAS (Peer Data Availability Sampling), which will increase the network's data capacity eightfold and reduce Layer-2 (L2) fees by up to 90%. This enhancement is expected to accelerate adoption in decentralized finance (DeFi) and enterprise applications, with analysts projecting a post-upgrade surge in on-chain activity. Additionally, the upgrade expands Ethereum's gas limit from 30 million to 60 million, while introducing support for secp256r1 cryptographic standards, enabling biometric authentication via devices like iPhones according to technical details.

Technical indicators suggest Ethereum remains in a consolidation phase, with price oscillating between $2,800 and $3,080. A sustained break above $3,080 could target $3,250, while a breakdown below $2,800 risks a deeper correction according to analysis. On-chain data reveals that long-term holders have accumulated 110,000 ETH in cold storage since November 20, indicating structural confidence. Meanwhile, derivatives markets show rising open interest, with futures positioning at $36.57 billion, signaling growing leverage as traders anticipate volatility according to market data.

However, challenges persist. If Ethereum falls below $3,000, liquidation volumes on centralized exchanges could reach $794 million, according to Coinglass data. Similarly, Tom Lee of Fundstrat predicts a short-term dip to $2,500 before a rebound toward $7,000–$9,000, though this scenario hinges on sustained institutional inflows and macroeconomic stability. Vitalik Buterin has also raised concerns about quantum computing risks by 2028 and the centralization of Ethereum holdings, with 10.4% now controlled by institutional entities.

Looking ahead, Ethereum's path will depend on three key factors: the success of the FUSAKA upgrade in reducing fees and improving scalability, the Fed's December monetary policy, and the ability of buyers to defend the $2,800–$2,988 support zone. If the network upgrade aligns with improved liquidity conditions and ETF inflows, Ethereum could test $3,550 by mid-2026. Conversely, a breakdown below $2,800 would likely trigger a retest of the 2025 cycle low near $2,659 according to price prediction analysis.